What To Know as Republicans and Biden Prepare for Debt Ceiling Battle
The biggest fiscal fight of the new year is lining up to be one over raising the federal debt limit. Here is what to expect as the showdown intensifies over the coming months.
What is the debt limit?
The U.S. debt limit is the total amount of money the government is allowed to borrow.
The debt ceiling was first created in 1918 and was originally set at $11.5 billion. Congress enacted the first aggregate debt limit that covered almost all government debt in 1939 and set it at $45 billion.
Congress is the sole body that has authority over raising the limit. Currently, the borrowing limit, also referred to as the debt ceiling, is $31.4 trillion. It w …